Boro Vujović, owner and director of Opereta, believes that information about the drop in real estate prices in the EU is 'more present in the media' than the actual situation on the ground. 'Definitely, the increase in interest rates has an impact on the market movement, because with an increase in interest rates, the number of buyers decreases and so does their budget. One speaks of a drop in prices, but that drop is more felt in the number of transactions, than in the prices themselves. We will see if that will reflect in a larger decrease in prices for a certain period of time. An increase in interest rates of one percent for a credit of 100,000 euros, for 20 years, means that the buyer will pay 11,000 euros more,' Vujović says. He emphasizes that the situation is significantly different from the great crisis of 2008. Fewer buildings are being built, investors are liquid, and banks are much more discerning in selecting clients they finance, he claims. 'Inflation has done its thing; prices have risen in general, and that has affected real estate as well. In foreign countries, there has been a decrease in the number of transactions, proportionally increasing interest rates. In countries where the interest rate is from 7 to 9 percent, the volume of transactions has been drastically reduced. Prices were adjusted by 5 to 10 percent, but nowhere is there a major correction,' Vujović believes.

37 Percent of Last Year's Transactions Were Foreigners

He says that the crisis in European markets will certainly spill over to our market, but does not believe it will have a large impact on prices. We have the lowest interest rates in the EU. The volume of construction due to renovation is large. We are expecting a record tourist year, inflation is still present, and we are becoming an increasingly attractive location for European buyers. The fact is that there are properties on the market whose price, regardless of all this, is unrealistically high. We can expect a correction in prices for such properties if the owners genuinely wanted to sell them,' Vujović says. Demand has increased, he adds, which was largely due to the Schengen and eurozone: 'The fact that Croatia has entered the eurozone and Schengen has led to the fact that 37 percent of last year's transactions were made by foreigners. Commenting on APN for APN, Vujović stated that APN has had an impact on the rise in real estate prices, which is particularly visible in previous years. 'This year, APN is responsible for the market being very lively, up to the end of this grass season, because buyers were waiting for APN to take advantage of the benefits for those who buy credit. APN is good for all those who bought real estate using subsidies. They bought real estate at a significantly lower price than today, but they also took advantage of the reduced interest rate,' Vujović says. Although it was good for all those who used it, Vujović says that APN is not good for the market as a whole because it has led to seasonality in real estate sales, and because of the short term in which the purchase must be realized and the rise in prices. 'We hope that the next measure, if it is up at all, will be much more qualitative and achieve the primary goal, which is to stop the emigration of the young and help them resolve their housing problem,' Vujović concludes. Preuzeto sa: t.portal

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